Renting or Financing a House: Which is the Best Option?

 The cultural issue of the dream of owning a home is so ingrained in United State culture, it ends up making many people not even like to think about renting a property, starting right away for the acquisition. But it is necessary, at this time, to consider the context. The truth is that several types of financing appeared on the market, but also, proportionally, the enormously varied and feared rates.

 So, before making this important decision, it is necessary to put the bills on paper in detail to see if rent can be a good alternative while saving for the future purchase of the property, for example. Want to know some factors that can influence this decision? So check out our article right now:

 Life planning

 The plans of a newly married couple are very different from a young man who has just moved out of his parents' house, isn't it? The couple will possibly want to have children and, therefore, is already thinking about a property that will accommodate this hypothetical life in the future. The young person, on the other hand, may just want to live closer to work, at a lower cost, to make it possible to carry out an exchange program in the next year. Considering these and many other variables, planning in detail what your home will be like in order to make the right decision about purchasing or renting a home is a mandatory initial step for any reality.

 Financial organization

 There are those who can only acquire certain things in life if they have a booklet in hand to pay monthly, instead of having to save money to pay in cash later. And that reality is much more common than you probably think. If you have this profile, it may be better to resort to financing, to ensure that, at the end of 20 or 30 years, you have a real estate. But understand: this definitely does not mean that this option is the most advantageous, but that it is the most appropriate for your financial profile.

 Location and lifestyle

 There are people who insist on living next to work, not valuing comfort so much. Others prefer to live in a bigger, more comfortable house, with a backyard and further away from the big centers, even though they have to face traffic during rush hour. For those who don't care much about the structure of the house, it can be a good deal to rent a property while saving money to buy a more suitable one in the future. For this buyer profile, it is easier to pay a lower rent amount than the financing installments.

 Comparison of values

 This is the most important point, what should really make you decide to rent or buy a property. When you do the math for each option, consider all the variables involved. When choosing to buy, for example, know that it is not just the value of the property that must be taken into account. There are interest on the financing, the broker's percentage — which is usually around 6% of the total value of the property — and taxes and fees, which can reach 5% of the purchase price. It is also necessary to consider the values ​​related to the decoration of the new house, as it will certainly need repairs and various utensils.

 In the case of rent, values ​​such as surety bond must be taken into account, if you do not have a guarantor, whose values ​​can vary from 6.5% to 11% of the rent value, and may even cover not only the rent but also condominium.

 See how much more is involved in this decision than simply the amount of the installment or the rent? At the end of the post, comment here and tell us about the best option for your financial profile: buy or rent? Share your impressions with us!

 Posted by: John Labunski Dallas

John Labunski Best Investment Advice

 Discipline is fundamental in all aspects of life, isn't it? Especially when it comes to saving money. Whether for the future of your children, to pay for college, buy a property or to enjoy old age with more comfort, you need to plan your financial future.

 But just planning is no use, you have to execute! And to execute it takes discipline, right? So that's why we decided, today, to list 7 tips here so that you have the necessary discipline to save some money. So let's go?

 Make a control

 It can be a spreadsheet, financial management software or even a notebook: what matters is that you keep your expenses well written down and always in sight, so you know exactly how much you need to live and how much you can save. Feed this control daily so you don't lose sight of a single penny.

 7 tips to be disciplined and save money

Divide everything into percentages

 If you have a fixed salary, it is much easier to project your cash flow and thus control expenses. Divide your salary into percentages, such as 30% for household expenses, another 30% for car and mortgage expenses, 20% for a long-term investment, and another 20% for personal expenses. At first it can be difficult to get used to the control, but it's only a matter of time before everything becomes routine.

 Underestimate your earnings

 If your income is variable, the revenue forecast is a little more complex, so it's important that you don't count on what you possibly won't earn. Average the gains from the last gains, considering both high and low movement periods. Consider the average as if it were your monthly income and plan on top of that amount. Everything that exceeds this average can be directed to a medium or long-term investment, for example.

 Exterminate the debts

 If you have high credit card bills, outstanding installments and some financing, try to exterminate everything at once. Use savings money to pay off debts that are generating interest, as the savings correction will always be lower. After that, try to forget that credit cards exist, stop making installments and only buy in cash. If you don't have the money on hand for the investment in question, wait!

 Make spending difficult

 When you leave the house with your bank card in your pocket, the feeling is that there is money left over, and the temptation can end up winning. But if you set yourself a weekly budget and keep the money in your wallet, the awareness that you are overspending is greater. So the card stays at home, in case of emergencies, and the money goes into the pocket.

 Make long term investments

 Savings is the most sought after investment by United State, but it is also the first to be used when the situation is tight. Being so easy to withdraw money from savings, it is difficult to discipline yourself not to use it in a need. So make long-term investments that cannot be withdrawn so easily. That way you protect both your investment and your future.

 Talk to an expert

If saving money is really a problem for you, maybe it's time to talk to a personal finance specialist , who can help you eliminate debts and superfluous expenses, building an effective financial plan for you to achieve your goals.

 So, ready to start saving money with discipline? Do you have any tips to give and enrich our list? Comment here and share your suggestions with us!

 

 

Posted by: John Labunski

What is the job of a financial advisor?

 A financial advisor's job is to make a financial plan. Through strategy, entrepreneurs can not only better understand the real situation of their business, but also regain control of the company's operations. You can hire him to analyze cash flow, carry out inventory control, arrange payments and countless other activities - it all depends on the client's goals. The interesting thing about having a financial advisor is that, by specializing in this area, the company will be able to obtain more reliable opinions about the safety of its assets. If the results are not as good as expected, hired professionals must formulate strategies to solve problems such as debt or falling profits.

 

Posted by: John Labunski Dallas